Authors

• Farshid Mojaver Hosseini ¹
• Farid Fayazmanesh ²

¹ Assistant Professor, Davis University in California, U.S.A

² Senior Economist

Abstract

Assessment of sectoral impacts of Iran’s accession to the world trade organization is the prime objective of this paper. ‏To this end a Computable General Equilibrium (CGE) model is employed. Using a Social Accounting Matrix (SAM), the model is calibrated to 1997 as the benchmark year. The results of the model indicate that accession of Iran to WTO leads to 2.6 percent contraction of the manufacturing sector and 1.7 percent expansion of the agricultural sector. Market access provision of WTO is most beneficial to Iranian non-oil exports, such that exports of manufacturing, mining and agriculture increases between 17.5 and 20.5 percent. Joining WTO exerts heavy pressure on mining sector, while construction sector experiences moderate expansion. An increase in international oil price can amplify the impacts of WTO accession on the expansion of the construction sector, weaken its impact on agriculture expansion and worsen its contractionary impact on Mining, Manufacturing and the Utilities.  

Keywords

• WTO
• CGE
• output
• Import
• Export
• Multi-Sectoral
• SAM